This Business It's Got History- Established over 39 years with consistent growth of 16% over the past 3 years. So essential are the products it is a given that it will continue to grow.
It's Got Great Regional Areas to Operate This will provide security for the buyer with a referral arrangement with main suppliers.
WHY THIS BUSINESS:
It's Well Positioned in The Market and is the market leader in its location when it comes to its market.
As the supplier for both Australian and international brands - which are the biggest and most recognised brands in the market.
With a solid base of regular customers and repeat business built up mainly by word of mouth over many years, it is widely regarded as the go-to place for its products.
It's 70% Trade Based - The business has a trade and retail market that supplies into Manufacturing Automotive Industrial and Consumer markets.
Its Products Are Essential The products are extensively required for buildings, machinery, infrastructure and households the uses are endless. The growing Western Australian population will require this business's products, as they are essential products for both domestic and commercial/industrial purposes.
POSITIVE FUTURE GROWTH:
Positive Trend - The Australian market is estimated at $3.7Bn and to grow 2% in 2022.
Profits Can Be Proven The business has a complete set of verified accounts that clearly show its profitability.
High Asset Mix in Purchase Price - The business reflects a high percentage of the purchase price made up of tangible stock and equipment over 50% of the purchase price. Compared to low-asset businesses.
Exceptional Customer and Growing Client Base- No one customer represents more than approximately 6% of the annual sales. This is a key feature not often found in businesses of this calibre
High Level of Client Loyalty - This has been built up over 39 years of good service, resulting in strong goodwill
All staff is crossed trained to allow an owner to take holidays throughout the year.
Operational Systems Make It Easier - The owner and his staff have built up a lot of knowledge, but this knowledge is instantly available to a new owner due to the operating systems which are in place and in particular the excellent support available from its suppliers.
THE MARKET:
Not affected by competitors -The business has never had any problem in handling competition. Its main competitors are big stores with little expertise.
They are not able to wholesale products and don't carry a specialised range of products like this business which gives it an edge with its trade-based clientele.
Barriers to market entry - Aside from the significant capital requirements to establish a business such as this, a newcomer to the market hoping to compete with this business would face the following issue:
Obtaining agencies
Competing with a well-branded dealer.
Obtaining and fitting out top-class premises
The lengthy period required to build up goodwill and ongoing repeat business
The time to build trust with major commercial/industrial customers.
LOW-RISK KEY FEATURES
MINOR OVERHEADS - Given the size of the annual turnover, overheads are relatively small.
EXCELLENT CASH FLOW A substantial portion of debtors are collected on a COD basis approximately 50% with the balance on 30-day terms.
HIGH GROSS PROFIT MARGIN - Self-propelled sales and a high gross profit margin of over 47% is indicative of a business that is both solid and in a strong growth phase.
LOW RISK - The business enjoys automatic growth across a range of market segments, has an excellent long-established reputation as the leading one-stop-shop business, and its relationship with a major brand means it can meet the prices of any competitors and still make healthy profit margins.
PROTECTED CLIENTS Many clients are compelled to purchase products due to proprietary equipment supplied to their customers.
LOW STAFF 2 Full Time
HIGH ASSET MIX IN THE PURCHASE PRICE. - 54% made up of equipment and stock
LONG ESTABLISHED 40 years.
Why would you buy a business from us?
Unlike other brokers who provide a couple of pages of basic information, we hand over highly detailed report on this business that will evaluate the staff, products, markets, facilities, sales potential, competition, financial analysis and much more.
The report usually runs over 50 pages, analysing everything you need to know to make a quick but informed decision that will save you time, money, frustration and risk.
In dealing with Performance Business Sales you will find our carefully selected business listings are of a higher quality and therefore reflect lower risk than most businesses offered by our competitors.
It will be worth your while to confirm your interest in this outstanding business to avoid disappointment.
Call Pat 0413 626 633 and ask for details on PKS12801PB
This is an exceptional opportunity for a new owner willing to take advantage of this outstanding business investment DON'T MISS THIS!.
